Economic benefits in immigration reform?

Reform could benefit San Diego, EconoMeter panel says

Adelfina Guzman listens along with immigration advocates to President Barack Obama's speech on immigration reform, Tuesday, Jan. 29, 2013, in San Diego. The President on Tuesday praised bipartisan efforts to overhaul the nation's immigration laws, welcoming "a genuine desire" to tackle a famously snarled system that has been stalled for almost two decades. (AP Photo/Gregory Bull)
— AP

Adelfina Guzman listens along with immigration advocates to President Barack Obama's speech on immigration reform, Tuesday, Jan. 29, 2013, in San Diego. The President on Tuesday praised bipartisan efforts to overhaul the nation's immigration laws, welcoming "a genuine desire" to tackle a famously snarled system that has been stalled for almost two decades. (AP Photo/Gregory Bull)
/ AP

Yes
25% (13)

No
75% (38)

Most Americans agree that the current U.S. immigration system requires fixing. Less clear are the effects new immigrants have on wages, jobs and the economy. Studies suggest that “over time” immigrants raise the overall standard of living of American workers by boosting wages and lowering prices, primarily because new immigrants and U.S.-born workers generally do not compete for the same jobs. But what about during times when the economy is expanding slowly, the unemployment rate is high and residents are leaving the labor force, frustrated that they cannot find a job? To ensure success, fixing the immigration system should include strategies to prevent the current below trend economic conditions from becoming worse.

If immigration reform means establishing a fair and workable system of legal immigration, then San Diego substantially benefits from the tax revenues of newly legalized immigrant workers lawfully employed and contributing to society. Allowing foreign nationals, often educated here, to fill professions under employer-sponsored H-1B programs will benefit San Diego technology companies unable to find skilled workers to fill such positions. An equitable way to deal with illegal immigrants without sending a message that America's laws can be broken with impunity is also critical. Achieving legal status should not be easier not following rules rather than by following legal processes.

One aspect of the proposal calls for improved border security, which would mean more jobs for border agents and a boost to San Diego companies specializing in security technology. Also helping the local economy would be the proposal to increase the number of green cards issued to immigrants who earn advanced degrees in the U.S., including our local universities. That would allow more of those degree holders to stay and contribute to the economy, particularly in areas such as science and engineering. Finally, the pathway to citizenship would lead to those taking the path becoming income tax payers, in addition to providing more social stability.

It would certainly benefit those individuals who are given an easier path to citizenship, enabling some of them to get better-paying jobs. To the extent they become more productive as a result of getting citizenship, there are benefits to all of us, for example in the form of higher taxes collected and a broader consumer market for goods and services. On the other hand, it also means more competition for the jobs for which many people who are already citizens are also looking.

Our proximity to Mexico means that San Diego disproportionately benefits from reform. First-generation immigrants, in particular, are the hardest working, most motivated members of the work force. They benefit their communities and the economy. If they come out of the shadows then they also pay taxes, contribute to Social Security and Medicare in a positive way because they are mostly young. On the skilled side of the equation, because San Diego is the home to large high-tech clusters, immigration reform would mean that highly skilled (and paid) jobs would be filled so that the foreigner whom we educate would be motivated to stay. It is right to correct the system and offer up the American dream to today’s immigrants.

San Diego and California will benefit greatly from an expanded and legalized guest worker program as the vast majority of all agricultural workers are currently illegal, while the industry is totally dependent on these workers. Other industries also depend heavily on illegal workers such as roofing contractors, cleaning services, landscape services, and even hospital cleaning staff, all hired through subcontractors. The greatest benefit would be the lessened risk of injuries or death trying to cross or stop border crossings in unsafe ways. The path to citizenship program would have less immediate benefit, but is the right thing to do.

Immigration reform would strengthen San Diego’s economy in many important ways. Visa reform, allowing graduates with vital science, technology, engineering, and math skills to remain here would provide critical talent to many of our key industry segments. Giving a clear path to citizenship to those who have been living in the shadows would allow them to more fully participate in the economy by becoming homeowners, for example. As full citizens, they could become integral parts of local communities, supporting schools and other activities. It is time to erase the fears and uncertainties which for too long have weighed on our region.

While comprehensive immigration reform is in the country's best interest, the most important benefit for San Diego would be a proposed reform package that includes a sharp increase in H-1B visas. These science and technology visas are capped nationally at 65,000, which is far below the demand by science and technology firms, given that the U.S. is not producing enough "home-grown" STEM graduates. If the H-1B visas were doubled or tripled, science and technology firms in San Diego and the nation could increase staffing, produce more innovative products and services, and perhaps hire the next Sergey Brin (cofounder of Google, who was born in the USSR)!